UNCITRAL, Security Rights and the globalisation of the US Article 9

Gerard McCormack Professor, University of Leeds

Abstract

Abstract – “UNCITRAL, Security Rights and the globalisation of the US Article 9” UNCITRAL, the United Nations Commission on International Trade Law, has recently produced a Legislative Guide on more particularly on secured transactions, or secured credit law as it is variously called. The Guide follows the broad contours of Article 9 of the United States Uniform Commercial Code though it is not an exact copy. It aims to harmonise and modernise the law of secured credit across the globe. In UNCITRAL’s view, the Legislative Guide will aid the growth of individual businesses and also in general economic prosperity. Harmonisation and “modernisation” are assumed to equal “liberal” security regimes and the facilitation of secured credit. In this paper the modernisation equals liberalisation agenda is subjected to greater scrutiny. The paper begins by asking what is the effect of recognising security rights? In short, what do security rights do for you? The second part asks why harmonise the law of secured credit particularly in the “liberal” American-nuanced way that the UNCITRAL guide seeks to do? The third part considers why “liberal” secured credit regimes are considered to be beneficial. The fourth part addresses in greater detail critical perspectives on the international harmonisation and modernisation agenda. The final part concludes and summarises the discussion counselling against the “silver bullet” of secured transactions reform especially in the American oriented manner that the Guide seeks to effect. Reform of secured transactions law is not the key for securing the Holy Grail of economic growth and financial development.